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Union Pacific Corp. Reports Q2 Revenue Miss, Announces CEO Change


Shares of Union Pacific Corp. (UNP) surged 8.8% in premarket trading on Wednesday, reaching an 11-month high. This came after the railroad operator disclosed a second-quarter revenue miss due to softening consumer markets and higher labor costs. Despite this, the company announced that Chief Executive Lance Fritz would be stepping down after over eight years in the role. Jim Vena, who previously served as the chief operation officer from 2019 to 2020, has been appointed as the new CEO, effective August 14.

Financial Results

Union Pacific reported a decline in net income for the second quarter, with figures falling from $1.84 billion, or $2.93 per share, in the year-ago period to $1.57 billion, or $2.57 per share. The FactSet consensus for earnings per share was $2.74. Furthermore, revenue experienced a 4.7% decrease, amounting to $5.57 billion. This decline was primarily attributed to lower volumes and reduced fuel surcharges, falling short of the FactSet consensus of $6.09 billion.

CEO Fritz’s Statement

In a statement, current CEO Lance Fritz acknowledged that the company’s performance for the quarter had been influenced by several factors including softening consumer markets, inflation, a one-time labor expense, and increased workforce levels.


Union Pacific projects a challenging demand and cost environment for the foreseeable future. As a result, the company anticipates that its 2023 outlook will be adversely affected, with volume expected to fall below current forecasts for industrial production, which is predicted to see a minimal 0.1% increase.

Stock Performance

Year to date, Union Pacific shares have gained 4.1%, while the S&P 500 has advanced 19.0%.

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